BANKING AFFAIRS

Detailed explanation-1: -A variable expense is any expense that can fluctuate in amount. Some examples of variable expenses include groceries, gas, and entertainment. Variable expenses can be difficult to budget for because you never know exactly how much you’ll spend.

Detailed explanation-2: -Classic examples of variable expenses are clothing, vacations, entertainment, eating out, gifts, facials, and home goods.

Detailed explanation-3: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

Detailed explanation-4: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.